Domino's Pizza gets customer specific using geospatial analytics
Data integration and analysis has become a core business function for Domino's Pizza since a customised business intelligence solution that relies on geospatial functionality was developed by Pitney Bowes.
Speaking at the Gartner Business Intelligence and Information Management Summit today in Sydney, Pitney Bowes customer information and management consultant Ravi Nath said that over a two-year period, the company worked with the pizza chain to turn its information management to information intelligence.
"Previously, Domino's didn't know a lot about their customers, only what type of pizza was being bought and at which store. The initial reason was because their data system was made of wrong addresses and anonymous names," he said.
"The other big issue was the young staff they have, and we found they would put in obscene words when they took orders and entered the customer's details into the system. The old system captured all of this and we needed to change that."
Pitney Bowes developed a customised solution that automated the data system based on customers' address, which Nath referred to as being "gospel".
As a result, Nath said Domino's was able to improve their customer experience, reduce cost, and, as a bonus, was able to gain enhanced business intelligence visibility of its customers.
"Domino's was able to identify potential areas of growth. For example, they were able to locate which stores were over-performing so they could split that store into two stores and reduce leaflet drops, as it was a huge cost. The company was also able to market to target specific areas of ethnicity that did not eat certain foods," Nath said. "So now it's a lot easier for the company to manage their data."
Since being able to implement this new system, Domino's are now equipped to focus on a delivery time of 8 minutes, and have been able to increase the percentage of online orders to 50 percent, with targets to hit 80 percent over the next few years.
"We are confident the changes we have implemented with the help of Pitney Bowes will not only help improve productivity through saving valuable time, but will also see an increase in revenue for both Domino's and our franchisees," said Domino's Pizza CIO Wayne McMahon.